The mayor of Bucharest, Nicusor Dan, has initiated the procedures for contracting a loan of up to RON 555 mln (EUR 115 mln) to refinance the loan extended in April 2020 by the European Bank for Reconstruction and Development (EBRD) for a period of three years.

A draft decision on this topic is on the agenda of the meeting of the General Council of the Municipality of Bucharest (CGMB) on October 31, according to Economica.net. Under the decision, the mayor is empowered to negotiate and sign, in the name and on behalf of the municipality, the terms and conditions of the financing/financing.

The debt originates from a 10-year EUR 500 mln Eurobond issued by the municipality in 2005.

Before 2015, the EUR 500 mln Eurobond was refinanced with several local currency bonds issued on the local market, with different maturities, out of which one matured in May 2020 - just after the Covid-19 crisis emerged. Under these circumstances, the EBRD stepped in and extended a three-year loan to Bucharest municipality.

Earlier this year, in April, the municipality issued RON 555 mln bonds with a maturity of 10 years and a coupon of 7.33%, aimed to refinance another bond with a similar size originating from the EUR 500 mln bond refinancing.

andrei@romania-insider.com

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